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More Signs of Economic DEFLATION: Expect Consumer Price Inflation To Spike as Diesel Fuel SHORTAGES likely, as Democratically Elected Progressive Governments Continue Their Stupid War on Fossil Fuels – November 19, 2022,

Posted on November 19, 2022November 19, 2022 by RichInWriters

More Signs of Economic DEFLATION: Expect Consumer Price Inflation To Spike as Diesel Fuel SHORTAGES likely, as Democratically Elected Progressive Governments Continue Their Stupid War on Fossil Fuels – November 19, 2022,

 

First thing I’d like to point out, and I like to mention this in almost all of my “consumer price inflation” posts. Even though the evidence suggests that Franklin D. Roosevelt’s(FDR) “New Deal” prolonged the Great Depression, he continued to win elections during his era in a landslide.

Glover Cleveland on the flipside is often remembered for his SECOND term in which he did NOTHING to intervene in the economy, the U.S economy although sluggish eventually got better, in fact if you look up the history of WORLD WARS, strangely enough, world war happened under Woodrow Wilson the president known for bringing America a central bank and INTERVENING in the economy, and world war 2 happened when FDR intervened in the economy.
 

 

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People tend to forget that the creation of a central bank is the creation of PRICE CONTROLS, the federal governments of the world seek to create a central bank in hopes to CONTROL prices. In the “New Deal” progressive laws like the minimum wage and social security were created, which basically guaranteed the failure of the Gold Standard.

FDR had to SCARE voters into buying into a new GOVERNMENT EXCHANGE rate for Gold to U.S dollars and he still didn’t stop inflation, however, WORLD WAR 2, TO HELP to RESHAPE spending patterns in the United States. When you believe in sound money, you quickly figure out that poverty starts in the MIND, which is a hard sell to people who imagine poverty as something EXTERNAL.

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I bring this up because, obvious to me, that a lot of people are going to VOTE to destroy their standard of living. Rising diesel fuel prices equate to rising food prices and I have to point out to the reader that there is NOTHING the government can do about rising food prices except for getting themselves deeper in debt.

In Canada, as an example, the progressives, like to REDEFINE economics, in the article I point to below, the writer Emily Chung completely ignores why Fossil Fuels are “subsidized.” She imagines that taxes collected by the Federal Government would exist WITHOUT the private sector. In her mind, and in her argument she imagines that taxpayers are subsidizing oil when it’s actually the other way around

How much are taxpayers really subsidizing Canada’s fossil fuel industry? | cbc.ca

As an example, a lot of GOVERNMENT jobs wouldn’t exist without the oil industry, HUMANS have to regulate an industry and if the government was receiving NO PROFIT how could they subsidize something? You have to understand the Carbon tax that exists in Canada, is FINANCED by Oil and other fossil fuel products. If it wasn’t the government could END fossil fuels tomorrow, and EASILY transition to green energy.

The reality is that there is NO sustainable market for green energy WITHOUT oil and other fossil fuels, the government is being SUBSIDIZED by oil, not the other way around.

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Honestly, it doesn’t even matter if agree or disagree with the obvious, the bottom line is that there are LIMITATIONS to what money can do, because even if the governments of the world SUBSIDIZE the growth of their green energy revolution, what’s going to happen is SHORTAGES of fossil fuels.

If you’re confused, allow me to enlighten you, imagine, that you’re enjoying a resource that you did not contribute to creating, because the government is SUBSIDIZING your lifestyle via WELFARE in the form of fiat money.

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Sure your purchasing power will allow you to consume diesel fuel-related products, but the cost to replenish diesel is still going up, and if there’s a REFUSAL by the Government to pass these higher costs to replenish the diesel fuel to their consumers, and the same progressive governments are attempting to demonize diesel fuels, claiming that taxpayers are financing it, you’ll start to see diesel fuel shortages more clearly.

In the U.K some lawmakers want to create a windfall tax on energy companies, I remind the reader that in the U.K it’s a CONSERVATIVE government making this proposal, the reason their government wants to do this is that they likely won’t get re-elected if they pass the new TRUE cost of oil and gas to the people who VOTED for this stupid green energy revolution.

UK to raise $65 billion from windfall tax on energy companies | cnn.com

Solving this energy problem requires AUSTERITY, and historically speaking, socialism tends to beat Austerity based politics, and I say this as a warning to anyone who imagines, that consumer price inflation is coming to an end, it’s not, the bond markets, won’t, and are anticipating interest rates rescinding in the near future, and the bond market might be right, but if the bond markets are correct, consumer price inflation is going to get even worse, because lower interest rates as we’re seeing are indicators for governments to SPEND more.

Now, personally, I don’t think Donald Trump has a chance to be President in 2024, but part of Donald Trump’s platform is to lower the U.S dollar, in Canada, their Conservative opposition leader if elected in 2025, has made FIRING the governor of the bank of Canada a priority, I assume based on his ideology, lower interest rates are necessary to combat a deflationary economy?

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What I’m getting at here is that nobody is talking about austerity when clearly that’s the solution, entire government entities need to be shut down, entire regulatory industries will have to be dissolved, unnecessary welfare spending will have to end, the problem with allowing the consumer price inflation genie out of the bottle is that the new normal becomes fighting PRICE CONTROLS.

Price controls are GOVERNMENT prices, that get undermined by consumer price inflation, for example, the minimum wage may have to be constantly adjusted to combat rising pricing, now the solution would be to abolish that price control altogether, but labor unions for example have little reason to exist without the minimum wage law.

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Austerity is NOT pretty, but all signs point to austerity being necessary, once, SHORTAGES are realized as the new normal. Diesel fuel shortage is a very serious thing, a lot of truck drivers will require subsidies to operate if the governments continue to manipulate prices because a shortage is a shortage, money can’t trump the cost to produce if there is no profit to produce or be productive, the GOVERNMENT will have to go further into debt.

The government doesn’t subsidize oil is the OTHER WAY AROUND! if the government subsidized oil and the cost to produce oil was too high, the government would simply cancel its SUBSIDY for big oil. Anyway, long story short, until you see REAL austerity prepare for rampant and continued inflationary prices.

Think gasoline is expensive? It’s cheap compared to diesel — and it’s making inflation worse | cbc.ca

Interesting times ahead!



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